HSBC funds £1m `green' buyout deal

AN environmental consultancy based in Newton-le-Willows has been bought by its management for more than £1m. TerraConsult specialises in assessing and reclaiming contaminated land and developing waste management facilities.

AN environmental consultancy based in Newton-le-Willows has been bought by its management for more than £1m.

TerraConsult specialises in assessing and reclaiming contaminated land and developing waste management facilities.

The £2.5m turnover company was bought by four of its younger shareholders in a deal funded by HSBC and brokered by Nick Hulme Corporate Finance .

Founder Nigel Robinson and fellow director Peter Thompson have been replaced in the boardroom - although both will remain in executive positions.

The management buy-out team is made up of newly appointed managing director John Martin, Jim Waterworth, Chris Eccles and Alan Binns.

Mr Martin said that the completion of the MBO would allow the team to maintain the continuity of its service in its sectors.

He said: "Under our new team, which will be supported by Nigel and Peter, we believe TerraConsult can continue to grow and that we will be able to further strengthen our position within the market.

"Our business has continued to prosper despite the difficult economic conditions and we believe we are well placed for the future. TerraConsult's customers include councils and government bodies, major waste management companies, contractors, developers and other consultancies."

All four of the management buy-out team will remain as shareholders in a separate business - Geotest Laboratories - which operates a successful soil and materials laboratory at Adlington, near Chorley.

Nick Hulme said the deal was evidence that leveraged deals were still possible in the current climate and both purchasers and sellers should remain upbeat.

He said: "The trick to completing a successful deal is understanding the respective positions of all parties at the outset - in essence, knowing what is do-able from the start.

"We put together a deal that is carefully structured to meet the requirements of each of the sellers, the MBO team and the bank.

"The biggest hurdle has been funding the deal in a banking market that has changed significantly in the last six months.